Six sigma can help companies improve quality and productivity

How Six Sigma Can Help Companies Improve Quality and Productivity?

How Six Sigma Can Help: Six Sigma is an overall concept of quality control that applies widely in organizations and sectors across various fields. The Six Sigma information community, founded by Motorola in the late 1980s, contributed over the decades to various sources and finally codified and represented by the Six Sigma Academy of Harry Mikel.

Six Sigma is a commonly used approach to address problems, analyzing the reasons for changes in procedures and finding acceptable solutions, and is extremely common in today’s world. In addition to improving productivity, the use of Six Sigma decreases business uncertainty and waste. It leads to the production of goods as near as possible to perfection.

How Six Sigma Can Help to Improve Productivity and Quality?

Six Sigma and Lean are methodologies that allow business processes to continuously improve. Lean Six Sigma is what most corporations do today. Six Sigma is richer than Lean, concentrating on process mapping and quality improvement. Yet basically, the theory seeks to do the same.

Six research processes for Sigma and Lean. You will look at the process from one end to the other rather than look at an individual part of a process and focus on its effectiveness. This enables you to look at every step of the process and attempt, if necessary, to eliminate any defects.

The Six Sigma theory simply is to understand the root cause of a defect and strive to eradicate the defect. This is an ideal way to minimize expenses and guarantee that in six or eight months it will not return again.

The following can be listed as six main advantages of how to improve productivity?:

  1. Reduce Operational Costs

Operational costs and risks are major considerations for most businesses operating worldwide. These factors lead to low wages or even losses. Certain risks cannot be minimized, and running costs are still all-round. A roadmap can be built using six Sigma methodologies that can dramatically minimize a company’s risk exposure. It also helps companies deliver their goods or services more efficiently and effectively.

The elimination of costs is another key goal of Six Sigma ventures. Ineffective and inefficient quality goods, facilities, or procedures are correlated with costs. In their daily activities and product offerings, many businesses tend to disregard the value of quality. The influence that this ignorance would have on these businesses is necessary to explain.

Productivity and Quality

2. Improve timeliness and efficiency

Six Sigma programs contribute to improving process performance. In addition, the Six Sigma initiatives will concentrate on improvements in the schedules for the completion of the process or the enhancement of on-time delivery of goods or services.

In order to increase speed, Six Sigma projects can be designed to minimize the number of machine setups or installation times during a production process, boost production or installation lines productivity and automate the process in whole or in the part where manual processes or operations are higher than necessary.

The terminology of process pain areas varies according to the industry in which the organization operates. It is critical that all aspects of efficiency or timeliness are quantified or specified before any Six Sigma project is carried out. Data, facts, figures, and details can be used to examine the defect of a product or operation.

3. Improve Customer Service

The company’s reputation is primarily generated by its customer interaction. Every business would like to see this relationship as stable as possible. Vocal detractors are the source of dissatisfaction for consumers. Six Sigma initiatives can help detect the number of discrepancies faced by consumers, what causes this shift, and how the number of unhappy customers can eventually be decreased. These Six Sigma programs can also be planned to improve consumer and supplier satisfaction. To truly understand consumers and not just their problems or worries, six Sigma projects can be carried out.

3. Improve the Cash Flow

In addition, six Sigma programs may be aimed at enhancing DSO, i.e. Days of sales Excellent for the business. If DSO increases, the cash flow will also increase. The higher the DSO, the lower the company’s potential for cash translation. In six Sigma programs, variance in invoicing processes, accounts payable processes, receivable account processes, and inventory management processes can be minimized.

In order to boost cash flow, several critical defects observable shall be found throughout the above-described processes. The spectrum of change must also be limited.

4. Improve the Regulatory Compliance

There are typically three forms of compliance with the regulations. The first is finance and audit, the second is IT, and the third is civil. In each of these dimensions, six Sigma projects may be introduced, depending on the type of defects found. Under the financial and audit umbrella, projects may aim at improving the allocation of funds, reducing the period or turn-off time in the process for estimating costs, etc. A project will attempt to decrease the risk of non-compliance, increase the efficiency of IT service assistance, etc. in the field of information technology or data security.

5. Improve accuracy, and policy compliance

By reducing defects-per-million-opportunities (DPMO) across the value stream in the process, 6 Sigma projects help to improve accuracy. The word “possibility” means the possibility of mistake. DPMO is a probabilistic calculation of a company or a production process’ error rate or capacity. In any opportunity, this calculation takes into account both the real flaws and the number of possible flaws. The sigma level of the process decreases as DPMO increases and vice versa. Six ventures in Sigma assist in calculating the DPMO & Sigma level of baseline and target process accuracy. It is a systematic way of measuring process precision in order to prevent errors from occurring.

Final Thoughts

Six Sigma is a journey, but a company will start experiencing change and excellence. The newly formed organizational culture would allow the leadership team to take the blame off its workers and blame weak process progress after many rounds of projects in various critical/non-critical functions. How to improve quality in business? And  Six Sigma would help managers cultivate professional workers to recognize and encourage ideas for change.